Teva Pharmaceutical (NYSE:TEVA) added ~6% pre-market Wednesday after its Q2 2023 results, as the generic drugmaker lifted the mid-point of its full-year revenue outlook and posted its first quarterly earnings beat in three quarters.
Israel-based TEVA reported $3.9B in revenue for the quarter, indicating ~2% YoY growth, while in local currency terms, its revenue expanded ~4% YoY, thanks to its generic products in international markets and drugs such as Anda and Austedo in North America.
“With this solid performance, we are slightly increasing the midpoint of our revenue guidance for the year and reaffirming all other guidance items,” CEO Richard Francis said.
Teva (TEVA) increased the lower end of the previously announced revenue guidance while reaffirming all other elements of its outlook. Its revised revenue guidance of $15.0B – $15.4B is in line with the consensus of $15.02B.
During the quarter, TEVA recorded $2.0B in revenue from North America, with ~5% YoY growth. Sales of Anda and Austedo from the region brought $392M and $308M to the topline with ~27% YoY and ~51% YoY growth, respectively, while contributions from generic products slipped ~6% YoY to $969M.
The European markets generated $1.2B in revenue with a ~1% YoY decline driven by a $1M hedging impact even as sales of the company’s generic products grew ~4% YoY to $909M.
Meanwhile, Teva’s (TEVA) non-GAAP gross profit margin slipped to 52.2% in Q2 2023 from 54.4% in the prior year due to inflationary and other macroeconomic pressures as well as unfavorable changes to product mix.
All in all, the company’s adj. net income fell ~17% YoY to $629M while its cash flow from operating activities as well as free cash flow more than doubled to $324M and $632M, respectively.